Rolls-Royce shares plunge on profit warning

Nov. 12, 2015

Shares fell in trading Thursday to 121.50 pence after Rolls CEO Warren East described the outlook for 2016 as "very challenging." East described the speed and magnitude of change as being significant and shows how "sensitive" parts of the business are to market conditions.

Rolls says profits would be hit by 650 million pounds ($986 million) of "headwinds." The company flagged "sharply weaker demand" in selected aerospace and offshore marine markets.

A new cost savings program of between 150 million pounds to 200 million pounds will be put in place for 2016.